Abstract
This proposal seeks to gather input from vlMGP holders on whether Magpie should support Penpie’s PIP #24, which proposes borrowing unallocated sPendle rewards from the Penpie treasury to execute mPendle buybacks in the secondary market during Penpie’s strategic transition period.
Motivation
As a key stakeholder in Penpie, Magpie holds meaningful governance influence over the protocol. Since PIP #24 proposes a transitional liquidity support mechanism involving treasury-held sPendle rewards, mPendle buybacks, and a lending framework with 5% APY interest, it is important that vlMGP holders guide how Magpie votes to ensure the decision reflects the broader interests of the community.
The proposal is designed to support emergency exit liquidity for mPendle, help stabilize the mPendle/PENDLE market peg, and maintain protocol stability while Penpie’s final transition plan is being determined.
Specification
Vote on whether Magpie should support Penpie’s PIP #24 proposal to borrow unallocated sPendle rewards from the Penpie treasury and use them to execute mPendle buybacks in the secondary market when market conditions justify intervention, including when the mPendle/PENDLE peg falls below 0.5.
Under PIP #24, the borrowed sPendle rewards would incur a 5% APY interest rate, with principal and interest distributed after the future attribution of sPendle rewards is confirmed. The mPendle acquired through buybacks would be stored in an independent new treasury address belonging to the Penpie Treasury, with snapshots of utilized sPendle quantities and generated transactions recorded for transparency.